GBP/USD has rejected off the 1.3320 resistance area recently with a daily close which is expected to support the upcoming bearish pressure in the pair. Ahead of the upcoming GDP report to be published today on the GBP side, certain volatility is expected to have an impact on the market today.
Today GBP GDP report is going to be published which is expected to have irregular impact on the market without any forecasted value, Manufacturing Production is expected to increase to 1.0% from previous value of -1.4%, Goods Trade Balance is expected to increase to -11.9B from the previous figure of -14.0B, Construction Output is expected to decrease to 0.4% from the previous value of 0.5%, Index of Services is expected to increase to 0.4% from the previous value of 0.2% and Industrial Production is expected to increase as well to 0.5% from the previous value of -0.8%. Moreover, today NIESR GDP Estimate report is going to be published with a hawkish expectation from the previous value of 0.2%.
On the other hand, after the recent NFP Economic report published with dovish results last week, USD has been quite weak recently. Today USD NFIB Small Business Index report is going to be published which is expected to decrease to 105.6 from the previous figure of 107.8 and JOLTS Job Opening report is going to be published with an increase to 6.88M from the previous figure of 6.70M.
As of the current scenario, GBP is currently quite hawkish with the upcoming economic reports expectation which if met, GBP is expected to gain certain momentum over USD in the process but any negative outcome of the reports may lead to impulsive USD gains in the coming days of the week.
Now let us look at the technical view. After the recent rejection off the 1.3320 area with a daily close, the pair is currently quite bearish residing at the edge of the dynamic level of 20 EMA. The overall trend is still bearish and expected to continue pushing the price lower towards 1.3050 area in the coming days. As the price remains below 1.3320 area with a daily close the bearish bias is expected to continue.
NEAR TERM RESISTANCE: 1.3320
NEAR TERM SUPPORT: 1.3050
TREND BIAS: BEARISH
CURRENT MOMENTUM: CORRECTIVE
